Difference between a change in quantity demanded and a change in demand
What is the difference between a change in quantity demanded and a change in demand? Suppose the State of Maryland decree a minimum wage of $15 an hour. What would be the effect of such legislation on the demand for labor?, the supply of labor? and on wages?
Change in quantity demanded and a change in demand
respond to my classmates
Student 1
According to cbo.gov, “A change in the quantity demanded causes a movement along the existing demand curve. It is a natural reaction to different prices. A change in demand causes a shift in the entire demand curve. This changes all values that previously existed”.
When the supply of labor increases the equilibrium price goes down, and when the demand for labor goes up, the equilibrium price goes up. So, the state of Maryland will keep adding employees until the MRPL equals the wage rate. Moreover, workers earn a $15.00 wage equal to the marginal revenue product of their labor.
Student 2
The main difference between change in demand and a change in quantity demanded is the fact that the change in quantity demanded brings about movement along the demand curve but for change in demand there is shift in the whole demand curve.
In a case where State of Maryland decree the minimum wage, the demand of labor will decrease, the supply of the labor will also decrease since the demand will be less. Consequently this will have an increase ng effect on wages.
Student 3
The principle contrast between change in demand and an adjustment in amount (a change in quantity demanded) requested is the way that the adjustment in amount requested realizes development along the interest bend yet for change sought after there is move in the entire interest bend.
For a situation where State of Maryland announce the lowest pay permitted by law, the interest of work will diminish, the supply of the work will likewise diminish since the interest will be less. Therefore this will have an expansion impact on wages.
Difference between a change in quantity demanded and a change in demand